Allianz profit up 24%, confirms full-year target

UlrikeDauer

FRANKFURT--Germany's Allianz SE (ALV.XE) on Tuesday said net profit rose about 24% in the first quarter, due to a strong contribution from all three business divisions--property and casualty, life and health insurance, and asset management.

Allianz, Europe's biggest insurer by premium revenue and market value, also said it is on track for the full-year target of an operating profit between 8.7 billion euros ($11.4 billion) and EUR9.7 billion.

"We are well on our way toward achieving our operating profit outlook for the entire year. Despite the good results in the first quarter, in view of the existing market risks, the management board sees no need for an adjustment of our outlook for fiscal year 2013," said Chief Executive Michael Diekmann.

First-quarter net profit attributable to shareholders climbed to around EUR1.7 billion from EUR1.37 billion in the same quarter a year earlier, based on preliminary data. That is above the EUR1.41 billion that seven analysts polled by Dow Jones Newswires had forecast on average.

Operating profit, which Allianz considers the best measure of its performance, rose to about EUR2.8 billion in the first three months, up around 20% from EUR2.33 billion a year earlier. That was also better than the forecast EUR2.42 billion.

Total revenue rose to EUR32 billion from EUR30.05 billion, and above the consensus forecast of EUR30.9 billion.

Allianz released a small set of key preliminary earnings prior to the annual shareholders' meeting. The full set of detailed figures will be published May 15, as scheduled.

Allianz didn't give any reasons for the improvements one week ahead of the regular earnings report. Like other insurance companies, its property and casualty business has, however, benefited from the absence of major claims in the first quarter. And according to the analyst forecasts, its highly profitable asset management has also made a major contribution.

In general, insurers are suffering from the protracted low-interest-rate market environment that is diminishing investment returns in their life insurance businesses. Allianz's diversified business, however, helps to offset part of the pressure.

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